Nigeria is poised to gain approximately N700 billion monthly following the removal of fuel subsidies and the implementation of local crude oil sales in naira.
This announcement was made by Wale Edun, Nigeria's Minister of Finance and Coordinating Minister of the Economy, during a briefing after the National Economic Council meeting chaired by Vice President Kashim Shettima.
Edun explained that starting from October 2024, the Federal Government has initiated a policy where local refineries are required to pay for crude oil in naira, subsequently selling petroleum products in the same currency.
This move is expected to introduce market-driven pricing for both petroleum products and foreign exchange, which Edun described as "a veritable platform for moving to a stage where we have market pricing of petroleum products, market pricing of foreign exchange."
The financial gains from these reforms are projected to significantly enhance the Federation Account, with immediate monthly benefits estimated between N600 billion and N700 billion.
While acknowledging potential deductions by the Nigerian National Petroleum Corporation (NNPC), Edun emphasized that "the country is better off now by a huge amount," and these gains will continue to grow as long as critical reforms in pricing are maintained.
In addition to these measures, the government has rolled out several social investment programs. Notably, N3.5 billion has been disbursed to 11,000 beneficiaries under the Consumers Credit Scheme, aimed at making essential goods more affordable for workers.
Furthermore, the Students Loan Scheme has provided N90 billion to support over 500,000 students, facilitating access to higher education through interest-free loans.
A strategic initiative is also underway to integrate foreign currency held outside the formal banking system into Nigeria's financial infrastructure.
This program, set to last nine months, allows individuals to deposit legitimate foreign currency without facing penalties or taxes, thereby enhancing fiscal transparency and stability.
These comprehensive economic strategies reflect Nigeria's commitment to stabilizing its financial landscape, improving fiscal transparency, and strengthening domestic economic structures by leveraging internal resources and encouraging lawful currency circulation.
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